Arizona State Retirement System Boosts Stock Position in Cintas Co. (NASDAQ:CTAS)

Arizona State Retirement System lifted its holdings in shares of Cintas Co. (NASDAQ:CTAS) by 1.1% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 26,473 shares of the business services provider’s stock after buying an additional 292 shares during the quarter. Arizona State Retirement System’s holdings in Cintas were worth $18,538,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in CTAS. LGT Financial Advisors LLC raised its position in Cintas by 311.1% during the second quarter. LGT Financial Advisors LLC now owns 37 shares of the business services provider’s stock worth $26,000 after acquiring an additional 28 shares during the period. Atwood & Palmer Inc. purchased a new stake in shares of Cintas during the second quarter worth about $27,000. Pathway Financial Advisers LLC purchased a new stake in shares of Cintas during the first quarter worth about $29,000. Rise Advisors LLC acquired a new position in shares of Cintas during the 1st quarter worth about $30,000. Finally, Webster Bank N. A. purchased a new position in Cintas in the 1st quarter valued at about $38,000. Hedge funds and other institutional investors own 63.46% of the company’s stock.

Cintas Price Performance

Shares of CTAS stock opened at $781.90 on Friday. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.74 and a quick ratio of 1.52. The firm’s 50-day moving average is $756.32 and its two-hundred day moving average is $698.93. Cintas Co. has a 12 month low of $474.74 and a 12 month high of $812.01. The company has a market capitalization of $79.33 billion, a PE ratio of 54.00, a price-to-earnings-growth ratio of 4.28 and a beta of 1.31.

Cintas shares are scheduled to split before the market opens on Thursday, September 12th. The 4-1 split was announced on Thursday, May 2nd. The newly created shares will be issued to shareholders after the market closes on Wednesday, September 11th.

Cintas (NASDAQ:CTAS) last released its quarterly earnings results on Thursday, July 18th. The business services provider reported $3.99 EPS for the quarter, beating the consensus estimate of $3.80 by $0.19. Cintas had a net margin of 16.38% and a return on equity of 37.82%. The firm had revenue of $2.47 billion for the quarter, compared to analyst estimates of $2.47 billion. During the same quarter in the previous year, the company earned $3.33 EPS. The business’s revenue for the quarter was up 8.2% compared to the same quarter last year. Analysts predict that Cintas Co. will post 16.64 earnings per share for the current year.

Cintas Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 3rd. Stockholders of record on Thursday, August 15th were paid a $1.56 dividend. This represents a $6.24 annualized dividend and a dividend yield of 0.80%. The ex-dividend date of this dividend was Thursday, August 15th. This is a positive change from Cintas’s previous quarterly dividend of $1.35. Cintas’s dividend payout ratio is 43.09%.

Cintas declared that its Board of Directors has approved a stock repurchase program on Tuesday, July 23rd that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the business services provider to repurchase up to 1.3% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board believes its stock is undervalued.

Analysts Set New Price Targets

Several equities research analysts have commented on the company. Redburn Atlantic initiated coverage on Cintas in a research note on Friday, August 9th. They set a “neutral” rating and a $670.00 price objective for the company. Royal Bank of Canada cut Cintas from an “outperform” rating to a “sector perform” rating and set a $725.00 price target for the company. in a research report on Monday, July 15th. Wells Fargo & Company upgraded Cintas to a “strong sell” rating in a report on Tuesday, August 13th. UBS Group upped their target price on shares of Cintas from $790.00 to $874.00 and gave the stock a “buy” rating in a report on Friday, July 19th. Finally, Barclays increased their target price on shares of Cintas from $700.00 to $850.00 and gave the company an “overweight” rating in a research report on Friday, July 19th. Two equities research analysts have rated the stock with a sell rating, eight have given a hold rating and seven have given a buy rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $742.36.

Insider Transactions at Cintas

In related news, Director Gerald S. Adolph sold 1,100 shares of the business’s stock in a transaction dated Wednesday, July 24th. The shares were sold at an average price of $765.72, for a total value of $842,292.00. Following the sale, the director now directly owns 31,452 shares in the company, valued at approximately $24,083,425.44. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 15.10% of the company’s stock.

Cintas Profile

Cintas Corporation engages in the provision of corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments. The company rents and services uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items; and provides restroom cleaning services and supplies, as well as sells uniforms.